AP reports:

European companies believe China is trying to avoid fully carrying out its free-trade pledges, according to a survey released Thursday ahead of a visit by European Union leaders for talks on trade, currency and other disputes.

The report by the European Chamber of Commerce in China adds to mounting complaints that Beijing is violating World Trade Organization commitments by trying to nurture Chinese companies at the expense of foreign rivals.

"People see that government bodies are trying to avoid (carrying out WTO pledges) more actively, so that is bad news," Joerg Wuttke, president of the European chamber, said at a news conference.

European leaders plan to lobby China to lower barriers to imports and foreign investment and ease currency controls when the two sides meet next week in Beijing, according to EU officials.

Europe has shown greater urgency lately about pressing China for action to narrow its swelling trade surplus, an area where Washington has long taken the lead in lobbying Beijing.

Both the U.S. and EU accuse China of improperly using tax, investment and other policies to promote the growth of Chinese champions in industries ranging from oil to banking while putting foreign companies at a disadvantage.

The investment climate is "not getting better," said Wuttke, who is the China manager for German chemical company BASF AG. He cited rules on auto parts imports and access to its retail gasoline and diesel market as areas where China is violating promises to give foreign companies equal treatment.

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http://www.cnn.com/2007/BUSINESS/11/22/china.trade.ap/index.html?section=cnn_latest